Retirement Planning. The First Questions You Need to Ask Yourself

We’re often called on to implement RRSP retirement plans for our clients. As your trusted Financial Advisors, we understand the importance of a long-term game plan for your finances. We’re also separate from the banks, you can trust our advice won’t be influenced by bigger commissions that other advisors may get from recommending particular types of investments. That’s important – because when it comes to retirement planning, you don’t want to be wondering whether the advice you’re getting is in your best interest, or theirs.

Having a profitable mix in your RRSP & TFSA accounts is one way to measure the success of your retirement plan. We’re happy to explain the tax benefits and important requirements of each. But before we even get to where your money needs to go, we need to do a financial needs analysis with you. After all, before you get to retire, you want to know what the path to retirement looks like and how much you’ll need in retirement – so you can prepare to fund it properly.

Before we meet, it could be very useful to ask yourself the following questions – and be honest about the answers.

What is your lifestyle like now and how are you funding it?

Are you spending like there’s no tomorrow, enjoying fine dining and entertainment, sparing no expense on your home, vehicle, travel and more? Are you a saver, putting off impulse buys to save up for the items you really want? There’s no necessary contradiction between being a big spender and having plenty in the bank, if your income is high enough – but keep in mind that people who keep close to budgets and are able to put away a significant portion of their income each month do tend to do better when an unforeseen job loss, illness or other factor causes a cash crunch. Ideally, you’ve already developed some good financial habits before you ever call up an expert to help you with your retirement planning.

What do you want your lifestyle to be like when you retire?

Do you see yourself taking on all those passion projects and adventures that you just never had time for when you were young? Buying a sailboat and cruising from port to port? Traveling around Europe in style? Winters in Palm Springs? Visiting your grandchildren in five different cities? Staying in your current home, close to your social circle? Or just enjoying some quiet time in comfortable surroundings?

We can help you understand what you’ll need to prepare for financially, so you can turn those dreams into achievable, affordable goals.